Jakarta, CNBC Indonesia – The rise of Covid-19 in Asia could have a negative impact on global semiconductor supply chains. The Wall Street Journal report said this could exacerbate the global semiconductor shortage.
One that will have an impact is the surge that occurs in Taiwan. There it is known as a significant hub for chip manufacturing.
On Saturday, the Taiwan Epidemic Command Center report said there were 251 new confirmed cases of Covid-19 and 26 yesterday. While the previous day there were 287 new cases and 24 deaths, quoted from The Verge, Tuesday (15/6/2021).
Covid-19 cases are said to have spiked since last May. The South China Morning Post reported a spike since May 10, 2021, growing from one number to three digits in a matter of days.
This spike in cases will have a major impact on at least one of the major chip companies from Taiwan, namely King Yuan Electronics Co. This month more than 200 of the company’s employees have tested positive for Covid-19.
While about 2,000 other workers have been put into quarantine. The Wall Street Journal said this incident made the company’s revenue this month cut by about a third.
Meanwhile, TSMC, which makes chips for many technology companies such as Apple and Qualcomm, said it had not been affected by the surge in Covid-19 cases in Taiwan. However, in April, TSMC also warned that chip shortages could occur until 2022.
The Wall Street Journal also reported that factories in Malaysia that have manufacturing capabilities also slowed down due to Covid-19. The country’s lockdown will reduce production by between 15%-40% according to the Malaysian Semiconductor Industry Association.
The pandemic is also impacting shipping hubs in Asia. One of them is a container in Yantian, Shenzhen which only operates 30% of its normal activity.
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